As-a-Service models, applied effectively, feature at least one critical distinction: Both service provider and client agree they want more than just gains in efficiency.
Clients go to a service provider with a set of well-defined outcomes they want to achieve, and the service provider tailors a solution that delivers on them.
Specific business outcomes—a set of shared goals—are agreed as a result of those conversations: increased revenues, improved margins, enhanced customer service, faster innovation, expanding into new markets or anything else critical to growth and competitiveness.
Outcomes can also be focused at a functional level: Increasing speed to hire, bringing employees to competence faster or enhancing the speed of finance and procurement processes.
In this outcome-based model, services are paid for based on the business value delivered through the as-a-service contract.
Automotive company exceeds targets
Consider a major automotive manufacturer’s success story. With more customers moving to digital channels, the company needed to transform its marketing strategy to deliver specific outcomes: Increase digital customer touch points and convert more digital leads to sales.
Challenges included corralling multiple agencies and digital partners, as well as a fragmented organization and platform landscape.
Using an as-a-Service approach, we were able to help the manufacturer achieve and exceed digital penetration targets in half the projected timeframe.
South American Bank Transforms
A South American bank offers another transformative example.
The bank had specific business outcomes in mind as it considered new as-a-Service capabilities for loan origination operations: Optimizing capacity to originate, improving client satisfaction and reducing operational costs to enhance its efficiency index and return over net worth.
Today, an as-a-Service model is being used to operate the bank’s residential and commercial loan origination and administration. The scope includes mortgage processing, mortgage software implementation, software maintenance and support, and infrastructure operations.
By improving the bank’s origination cycle times, market responsiveness and regulatory compliance through automated and integrated workflows, the client expects to benefit from greater customer satisfaction and strong operational cost savings.
Using cloud technology, we are implementing, supporting and maintaining new software and front-end applications, including mobile solutions that will help the bank avoid significant additional capital expenditure.
The bank can also expect a reduction of contract analysis rework, an increase in proposal and contract conversion and enhanced customer satisfaction.
The Compelling Promise
Consolidation with end-to-end process integration will provide clearer accountability with vendors, while automated and integrated workflows are expected to improve risk management and controls. The solution also makes provision for future scaling and integration with other credit products.
The promise of as-a-Service is compelling: Process and IT delivery centered on real business outcomes. Companies are recognizing the promise of as-a-Service and its ability to help them meet their goals in ways both tangible and measurable.
There are many ways to embark on an as-a-service journey; the most important thing is to get started.